{"id":70015,"date":"2024-02-20T17:21:06","date_gmt":"2024-02-20T07:21:06","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=70015"},"modified":"2024-03-01T10:35:49","modified_gmt":"2024-03-01T00:35:49","slug":"commercial-success-for-risk-focussed-advice","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2024\/02\/20\/commercial-success-for-risk-focussed-advice\/","title":{"rendered":"Commercial Success for Risk-Focussed Advice?"},"content":{"rendered":"<div id=\"polls-319\" class=\"wp-polls\">\n\t\t<div class=\"pollHeader\"><strong>It remains possible to sustain a commercially successful risk-focussed advice business model.<\/strong><\/div><div id=\"polls-319-ans\" class=\"wp-polls-ans\"><ul class=\"wp-polls-ul\">\n\t\t<li>Agree <small>(47%)<\/small><div class=\"pollbar\" style=\"width: 47%\" title=\"Agree (47% | 57 Votes)\"><\/div><\/li>\n\t\t<li>Disagree <small>(36%)<\/small><div class=\"pollbar\" style=\"width: 36%\" title=\"Disagree (36% | 43 Votes)\"><\/div><\/li>\n\t\t<li>Not sure <small>(17%)<\/small><div class=\"pollbar\" style=\"width: 17%\" title=\"Not sure (17% | 21 Votes)\"><\/div><\/li>\n\t\t<\/ul><div style=\"text-align: center\"><\/div><\/div>\n\t\t<input type=\"hidden\" id=\"poll_319_nonce\" name=\"wp-polls-nonce\" value=\"d2c8218195\" \/>\n<\/div>\n\n<p>Our latest poll is seeking to gauge 2024 adviser sentiment for what has been a vexed question in recent years:\u00a0Does Australia&#8217;s advice sector still have the capacity to deliver life insurance solutions on a commercially-successful stand-alone basis?<\/p>\n<p>&#8230;And we&#8217;ve chosen the wording of this poll carefully, in that we&#8217;re asking whether &#8211; perish the thought &#8211; a risk-focussed advice business model can be commercially <em>successful<\/em>; not just commercially <em>viable<\/em>.<\/p>\n<p>Similar conversations have previously been considered and debated by Riskinfo readers, with indications that &#8211; notwithstanding the LIF commission caps, minimum education requirements and the rising cost of delivering advice &#8211; a commercially-successful risk-focussed advice model may be almost within the reach of many; not just a few outlying advice business propositions.<\/p>\n<p>For example, previous poll results suggest the vast majority in the adviser community believe an 80\/20 hybrid commission model will sustain at least a viable risk-focussed advice business (see: <a href=\"https:\/\/riskinfo.com.au\/news\/2023\/01\/31\/poll-result-60-20-not-enough\/\" target=\"_blank\" rel=\"noopener\">&#8230;60\/20 Not Enough<\/a>), while almost six in ten advisers have previously indicated the&#8217;re open to the possibility of charging fees for at least some elements of the life insurance advice process (see: <a href=\"https:\/\/riskinfo.com.au\/news\/2023\/03\/21\/latest-poll-fees-and-risk-advice\/\" target=\"_blank\" rel=\"noopener\">Fees and Risk Advice<\/a>).<\/p>\n<p>In considering the way ahead for risk advice through a positive lens, it appears the Quality of Advice Review reform measures, once implemented, may produce at least some savings in the drive to reduce the cost of delivering advice, while a more nuanced business structure in 2024 and beyond may allow more advisers build some elements of fee income into their default life insurance advice processes.<\/p>\n<p>While an 80\/20 commission cap arrangement appears to be off the table, at least for the time being, can you see that light at the end of the tunnel when it comes to commercially successful risk-focussed advice business propositions in the future?<\/p>\n<p><strong><a href=\"https:\/\/riskinfocus.com.au\/\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-70026\" src=\"https:\/\/riskinfo.com.au\/news\/files\/2024\/02\/240220-Poll-Story-Insert.jpg\" alt=\"\" width=\"720\" height=\"180\" srcset=\"https:\/\/riskinfo.com.au\/news\/files\/2024\/02\/240220-Poll-Story-Insert.jpg 720w, https:\/\/riskinfo.com.au\/news\/files\/2024\/02\/240220-Poll-Story-Insert-300x75.jpg 300w, https:\/\/riskinfo.com.au\/news\/files\/2024\/02\/240220-Poll-Story-Insert-696x174.jpg 696w\" sizes=\"auto, (max-width: 720px) 100vw, 720px\" \/><\/a>Riskinfocus 24<\/strong><\/p>\n<p>The myriad of issues surrounding this poll question will be discussed in panel sessions during our <a href=\"https:\/\/riskinfocus.com.au\/\" target=\"_blank\" rel=\"noopener\">Riskinfocus 24<\/a> CPD event series in March. Listen to what your own adviser peers have to say about this and other issues impacting the successful delivery of life insurance advice to Australian consumers, where we will look to contribute to advancing an outcome that will see more advisers delivering more life insurance advice to more Australians.<\/p>\n<p>In the meantime, tell us what you think about this latest poll question and we&#8217;ll report back next week&#8230;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Our latest poll is seeking to gauge 2024 adviser sentiment for what has been a vexed question in recent years:\u00a0Does Australia&#8217;s advice sector still have the capacity to deliver life insurance solutions on a commercially-successful stand-alone basis? &#8230;And we&#8217;ve chosen the wording of this poll carefully, in that we&#8217;re asking whether &#8211; perish the thought [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":70024,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[49,270],"tags":[],"class_list":["post-70015","post","type-post","status-publish","format-standard","has-post-thumbnail","category-polls","category-remuneration"],"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/70015","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/comments?post=70015"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/70015\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media\/70024"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=70015"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=70015"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=70015"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}